After trading in the negative territory during post noon trading session, the Indian equity markets lost further ground and closed in the red. While the BSE-Sensex today closed lower by 251 points, the NSE-Nifty closed lower by 69 points. Midcaps and Smallcaps too closed in the red today. While the BSE Mid Cap index was down by 1.28%, the BSE Small Cap index closed lower by 1.5%. oil and gas and realty stocks were the biggest losers today.
As regards global markets, Asian pack closed strong today. The rupee was trading at Rs 62.34 odd levels to the dollar at the time of writing.
The management of TTK Prestige revised it sales guidance downwards to 12-14% from 25% for FY15. The primary reason has been muted sales during the Diwali season. The company expected strong sales growth during the festive season but it stood at just 10% compared to the last year. Another factor which is expected to impact the sales growth is the power situation in Southern markets. Since the company is into induction cook tops, uninterrupted power supply is key factor for the sale of its products. While the power situation has improved a bit the deficit in Tamil Nadu has worsened. This has also hurt the company a bit. As far as EBITDA margins are concerned, they are expected to remain in the range of 12%.
Healthcare stocks have ended the day on a mixed note. The Indian pharma pricing authority has capped the prices of 52 more drugs which include painkillers, cancer and skin care medicines as well as antibiotics. It may be noted that currently 400 odd drugs are under the pricing control. The companies that typically manufacture these 52 drugs include Lupin, Cadila Healthcare and Merck. Hence, these companies will be the most impacted by the new ruling as they will not be able to charge higher prices.